Why is it some rentals get snapped up and others take longer to rent? The answer is a simple matter of supply and demand and market competition.
Blogger: Diane Bukowski, Managing Director, Eezirent Pty Ltd
You have to compare like with like, but there are still some basics that apply across the board. If other properties in your area are renting faster than yours, these are some factors which may be deterring applicants:
• Rent is too high - you must be objective when setting the rent. If you are asking for more than other properties in the same market, your property must be significantly better.
• The market doesn't know the property is available - the vast majority of tenants search for property via the internet. So access to sites like www.realestate .com.au will help put your property in front of more faces. Don't overlook the value of a 'For Rent' sign to attract passing trade.
• There are faults with the property - cleanliness, privacy and security are big factors. Simple things like fresh paint, new carpets, air conditioning and security measures are an investment that will pay dividends in short vacancy times.
How to pinpoint the problem
If you are advertising the property but not receiving many enquiries, then the issue is probably the rent. The public can make quite good comparisons from what they see on the internet - this makes price the main differential.
If you are getting good enquiry and inspections but no applications, then the issue is likely to be a problem with the property. This means that the property looks okay for the price on the internet, but when applicants inspect they don't see value for money. If you find yourself in this situation, be sure to get feedback from those who inspect. There might be something about the property that might seem okay to you, but it is putting people off.
Reducing the rent to meet the market is an obvious solution and makes more sense than holding out for the list price. Take a property listed for $350. Let's reduce the rent by $10. Over the course of a 12 month lease, that is a 'loss' of $520. However, for every week left vacant, the owner is losing $350. The rent discount is soon recovered.
An alternative approach is to offer a rent incentive. If you really believe the property is worth $350, why not offer a week's free rent, or a retail gift card of $350. Putting this in the headline of the ad text will attract attention and might be just what is needed to secure a tenant.
About Diane Bukowski
From school teacher to website entrepreneur, Diane Bukowski is the managing director of Eezirent – an online service delivering professional tools to self-managing landlords.
After many years running an award winning real estate office, Diane took up the challenge offered by her business partner to set up a service that would level the playing field for self-managing landlords. The result is Eezirent which allows these investors to advertise their property on www.realestate.com.au, verify their applicants with the National Tenancy Database, and access the documentation and knowledge needed to efficiently manage a lease.
Diane’s blogs aim to provide practical advice to the self-managing landlord.